It now faces liquidation after ACL, which runs the Ricoh Arena, rejected a Company Voluntary Arrangement.

But an application by the Otium Entertainment Group for a transfer of the club's share in The Football League has been accepted.

A Football League statement read: "The League has transferred the club's share to the administrator's preferred bidder Otium Entertainment Group.

"This comes after an application under the 'exceptional circumstances' provision of the League's Insolvency Policy and on the acceptance of a 10-point deduction for the upcoming League One season despite the failure of its CVA."

Analysis

"As if the situation hasn't been unsettling enough for Sky Blues fans, this impending liquidation will feel like the final straw.

"In some ways it was perhaps inevitable: both sides in the row, ACL and Sisu, always seemed reluctant to concede any ground in their pursuit of a solution and this is the result."

It claimed that the Otium Entertainment Group had no right to request the move as its takeover of City had not been completed.

An ACL statement explained its decision to reject the CVA: "This decision was based on ACL's twin aims to first keep Coventry City playing in Coventry; and second, to ensure that Coventry City is financially viable for the next few years and beyond.

"This last point is especially important given that CCFC has been the subject of a 'catastrophic insolvency' in the hands of its previous owners.

"The CVA proposals put forward by the administrator simply do not address these obvious concerns. And these concerns are not only the concerns of ACL - they are the concerns of all Sky Blues supporters, and should be the central concerns of both The Football League and The Football Association.

"We would welcome some new proposals as soon as possible."

Under the terms of the deal between ACL and Coventry City over the Ricoh Arena, which has been the Sky Blues' home since 2005, the club had been paying £1.2m in rent per year, and only received a limited share of the catering and parking revenues from matchdays.

Eventually, the Sky Blues' debts to ACL mounted to £1.3m leading to CCFC Ltd going into administration and the club being deducted 10 points by the Football League last season.

After the Football League's decision, a Coventry club statement read: "CCFC Ltd [the company that entered administration] will be put into liquidation after ACL failed to accept the Company Voluntary Arrangement (CVA) put forward by the administrator.

"Rather than the statutory 15-point penalty, the club will now receive a 10-point deduction going into the new season while the awarding of the membership of the Football League provides certainty for the future.

"Coventry City have also been cleared to play their home matches at Sixfields Stadium."

The Sky Blues start the League One season away at Crawley on Saturday.

I've been a Coventry City supporter since I was 9 years old and I've seen a lot of hard times at the Club. I now watch with incredible sadness and anger at the attitude of the Football League and others. One appreciates the need for correct behavior by clubs, but have those they forgotten that it represents a city and a community. Or has it become a Northampton club.

It is not the council/Arena owners at fault here. They've been forced to deal with a complex hedge fund which is incredibly litigious & aggressive to such an extent they are trying to bankrupt a local charity & cost Coventry taxpayers millions of pounds by forcing a fire sale of the Arena. The football authorities must conduct a full independent enquiry. Or are they scared of legal action too?

518 Your quite right. If CCFC need a temporary home then there must be a stadium that can contain the level of support they need - and there is no way that Sixfields can do this. If Brighton could travel all the way to Gillingham for a couple of years before they got going again, surely Coventry could do the same level of journey to a suitable stadium.

Wish I could go to the first home game at Northampton, last year there were 9,000 season ticket holders in a 30,000plus stadium and this year 300 in a 7,500 stadium. That will generate a pittance - will the players get paid in buttons? Perhaps they can run out to Ghost Town by The Specials?

With the way Coventry City Council have botched things, ruining the city, destroying the football club, kicking business owners (including shopkeepers and SISU) in the teeth, I think I'll write a song about it.

On my Knees Praying for The 2nd Coming of Christ to save my beloved City that Hitler could not destroy , its the love of money and the sins of corrupt leadership that have destroyed a Christian City of Benedictine Monks , Jimmy Hill , Godiva , r Sir Frank Whittle , The Specials Ghost Town .

THANKYOU to all footie postings and I am sorry for our sins to Sunderland FC , from RnB soul fan MLK JFK

This whole sorry business has shown up exactly what football teams are to the FL, just names!. History, players, stadium, fans etc. are worth nothing to the Football League. The only thing that counts is the team "name" plays games. If Dubai said they had bought all the teams in League 1 to play in their new stadium for 2 years ahead of the 2020 world cup then the FL would allow them.

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